Cat Financial News

Philly Shipyard, Inc. (PSINC), the sole operating subsidiary of Philly Shipyard ASA, announced today that it has signed a commitment letter with Caterpillar Financial Services Corporation (Cat Financial) for a USD 150 million loan facility to finance the construction of four next generation 50,000 dwt product tankers, designated as Hulls 025-028. The facility will be subject to a maximum borrowing amount of USD 75 million per vessel and secured by a first lien on the four vessels. The loans will accrue interest at three-month LIBOR plus 3.00% as defined in the commitment letter. The company expects to enter into definitive agreements for this facility in Q1 2016.

Seeking a complete power and propulsion system designed specifically for tug operations, Seattle-based Harley Marine Services turned to Caterpillar—ordering four Cat 3516 marine propulsion engines and four Cat Propulsion Marine Thruster Azimuth – Tug (MTA-T) rated drives. These units will power two new Harley Marine harbor tug vessels currently under construction at Diversified Marine Incorporated, a shipyard in Portland, Oregon. “Much of Harley Marine’s fleet is powered by Cat engines…

At the 2014 International Workboat Show, Caterpillar will launch a new product support campaign, unveiling the new Cat C18 Marine Bundled Repair Solution and commercial Extended Service Coverage (ESC) for all available existing Bundled Repair Solutions. The new Cat 18 bundled repair solution, which builds off of the Cat 3406 and Cat 3412 bundled repair solutions launched in 2013 as well as the Cat 3408 bundled repair solutions launched this year, is a customizable, comprehensive solution for customers looking to keep their vessels on the water longer. Customers can choose a top end or major foundational kit and customize it with the related components needed for their engine overhauls.

Cat Financial reported second-quarter 2014 revenues of $728 million, an increase of $34 million, or 5 percent, compared with the second quarter of 2013. Second-quarter 2014 profit after tax was $146 million, a $35 million, or 32 percent, increase from the second quarter of 2013. The increase in revenues was primarily due to a $36 million favorable impact from higher average earning assets. Profit before income taxes was $206 million for the second quarter of 2014, compared with $158 million for the second quarter of 2013. The increase was primarily due to the absence of a $23 million currency loss in the second quarter of 2013, a $17 million favorable impact from higher average earning assets and a $16 million improvement on net yield on average earning assets.

Caterpillar Marine announced that Cat power and propulsion solutions have been selected to provide an optimized tug package for a 55T ASD tug new build for Remolcadores Marracoi SL (REMARSL). Two Cat 3512C EPA Tier 2 propulsion engines have been selected to power the tug as well as 2x  MTA 523FP Azimuth thrusters. Each Cat 3512C marine propulsion engine will provide 2x1765 kw @1800 rpm of rated power. Auxiliary power will be delivered through 2 x Cat C9 engines. The vessel will be constructed at Freinaval shipyards in Spain. Cat dealer Finanzauto led Caterpillar efforts on the project. Completing the comprehensive Caterpillar efforts on the sale was Cat Financial, who was able to deliver a stellar financial package for the customer.

At the 2013 International Workboat Show, Caterpillar is launching an unprecedented product support campaign, unveiling not only a new Cat® 3406 Marine Bundled Repair Solution but also Extended Service Coverage (ESC) for all available Bundled Repair Solutions. The new Cat 3406 bundled repair solution, which builds off of the Cat 3412 bundled repair solution launched earlier this year, is a customizable, comprehensive solution for customers looking to keep their vessels on the water longer.

Caterpillar Marine has acquired Johan Walter Berg AB, whose core brand, Berg Propulsion, is a leading manufacturer of mechanically and electrically driven propulsion systems and marine controls for ships. As a result of the acquisition completion, all Berg Propulsion products will be rebranded as Caterpillar. The new Cat® Propulsion System for optimized bundles and propulsion packages includes controllable pitch propellers, transverse thrusters, azimuth thrusters, aftermarket parts and remote control systems. All Cat Propulsion System products are ideally suited for the complete and comprehensive line of Cat and MaK™ medium and high speed engines.

Caterpillar's Engine Products Division has re-engineered its sales and marketing efforts with the formation of a new marine business unit within this division. The new marketing team, headed by 21-year veteran sales and marketing manager, Jan Arnold, includes more than 370 years of combined experience in the marine engine business. MR/EN recently spoke with Arnold to get her views on the market for engines in the marine industry, as well as her goals and plans for the future of this new consolidated group. It was a group that had a wide-variety of coverage, yet lacked a consolidated or home base - the biggest factor in Caterpillar's (CAT) decision to form a new marine business unit within its engine products division.